Press Release
VIS Reaffirms Entity Ratings of Popular International Private Limited
Karachi, July 01, 2025: VIS Credit Rating Company Limited has reaffirmed entity ratings of Popular International (Private) Limited (PIPL) at 'A/A1' (Single A/A One). Medium to long term rating of 'A' reflects good credit quality; Protection factors are adequate. Risk factors may vary with possible changes in the economy. Short term rating of 'A1' indicates strong likelihood of timely repayment of short-term obligations with excellent liquidity factors. Outlook on the assigned rating remains Stable. Previous rating action was announced on December 08, 2023.
PIPL is primarily engages in the import, marketing and distribution of pharmaceutical, diagnostic and healthcare products across Pakistan. The Company operates through seven key segments, namely: Surgical, Biological, Diabetic, Diagnostic, Medical Disposables and Anesthesia Equipment. Headquartered in Karachi, PIPL maintains a nationwide presence through seven regional offices located in Hyderabad, Quetta, Peshawar, Lahore, Multan, Rawalpindi and Faisalabad.
Pakistan’s logistics and supply chain sector plays a critical role in healthcare delivery, particularly in the distribution of imported medical devices such as monitoring and life support devices, diabetes testing kits, and diagnostic tools—over 98% of which are sourced internationally. The medical devices market is projected to grow at a strong pace through 2029, supported by Government initiatives and continued expansion in the private healthcare sector. However, the sector faces challenges including stringent DRAP regulations, high import duties, and underdeveloped cold chain infrastructure. To mitigate these, the government has allocated PKR 27 billion under the 2024–25 Public Sector Development Program for investments in electro-medical equipment and hospital upgrades.
The assigned ratings reflect PIPL’s strong market position and sustained profitability, underpinned by a diversified revenue base and healthy margins. The Company maintain a conservative capital structure, while the liquidity profile remains adequate, supported by extended credit terms from suppliers and internal financial backing. Coverage metrics remain sound, driven by consistent cashflow generation and low debt levels. Going forward, consistent growth in topline along with maintenance of coverages will remain important rating triggers.
For further information on this ratings announcement, please contact at 021-35311861-64 or email at info@vis.com.pk
Applicable Rating Criteria: Corporates:
https://docs.vis.com.pk/docs/CorporateMethodology.pdf
VIS Issue/Issuer Rating Scale
https://docs.vis.com.pk/docs/VISRatingScales.pdf